Peugeot, Citroen, DS and Dongfeng lock in EVs

Futuristic battery-powered concept cars like the Peugeot Fractal and DS E-TENSE sports coupes could become reality this decade as part of a new deal between the French car-maker PSA Group and its Chinese partner Dongfeng Motors.

The two companies today announced plans to produce a range of light and small electric performance cars from Peugeot, Citroen, DS and Dongfeng, to be sold globally from 2019.

The agreement is a significant milestone in the strategic partnership between PSA Group and DFM, which have jointly developed an electric version of PSA's latest Common Modular Platform (CMP) since April 2015.

"This future electric platform (e-CMP) will deliver a worldwide offering of all-electric, high-performance B and C segment vehicles for the Peugeot, Citroën, DS and Dongfeng brands from 2019," said the companies.

The e-CMP plan was revealed as part of a new '5A+' medium-term strategic plan for the Dongfeng Peugeot Citroën Automobile (DPCA) joint-venture, which held a signing ceremony today in China.

The mid-term business plan also calls for temporary employee exchanges between both companies' research and development, marketing, manufacturing, finance and human resources operations "to increase synergies to develop talent internationally".

"The future e-CMP platform is a key milestone in our partnership with Dongfeng," said PSA chairman Carlos Tavares, who was joined at the ceremony by DFM chairman Zhu Yanfeng.

"It will speed up the worldwide development of both of our groups, while helping us to reach the strict carbon objective set for 2020."

DPCA said its new 5A+ strategic plan is designed to make it "an efficient car manufacturer, capable of providing its customers with comprehensive mobility solutions".

The announcement follows last month's release of PSA's six-year 'Push to Pass' strategic plan, which by 2021 promises 34 new Peugeot, Citroen and DS models, including 26 passenger cars, eight light commercial vehicles and the group's first one-tonne ute, reportedly based on the Toyota HiLux.

It also includes the introduction of seven plug-in hybrid, four all-electric and five new global DS models by 2021, before which time PSA has committed to launch “one new car, per region, per brand and per year”, including 17 will take place in the India Pacific region.

Alongside its mid-term electrification plan, PSA aims "To significantly increase customer satisfaction with products and services, with the aim of moving into the top 3 ranking in the industry by 2018 and becoming No.1 in 2020; Generate revenue in excess of RMB 100 billion by 2020; and ensure profitable, sustainable growth underpinned by productivity gains of 30% by 2020."

The move by Europe's second-largest car-maker echoes that of its arch-rival Renault-Nissan, whose CEO Carlos Ghosn has aggressively promoted EVs and once predicted battery-electric cars would account for 10 per cent of the global auto industry by 2020.

The world's top-selling EV, the Nissan LEAF, notched up just 200,000 global sales last December after five years on sale, but has found only about 600 homes in Australia, where there are no government incentives and only fledgling EV charging infrastructure.

That won't stop all future Peugeot and Citroen models being considered for local release, said PSA's Australian spokesman Tyson Bowen.

"There is huge potential for EVs in the future, particularly around urban environs. More importantly they also compliment PSA Group's overall emissions reduction aims.

"While it's too early to commit to any models for Australia, they are absolutely on our radar and will be considered alongside the significant number of new models PSA has committed to for the region under the 'push to pass' plan."